Author: Earvin James M.
Atienza
Hon. Sec. Vincent Perez, in his capacity as the
Secretary of DOE, v. LPG Refillers Assoc. of the
Phils., Inc. (2006)
Petitioner: Sec. Vincent Perez
Respondent: LPG Refillers Assoc. of the Phils., Inc.
Ponente: Quisimbing, J.
DOCTRINE: Rule-making Power of Administrative Agencies; Valid Penal
Regulations
For an administrative regulation, such as the Circular in this case, to have the
force of penal law, (1) the violation of the administrative regulation must be
made a crime by the delegating statute itself; and (2) the penalty for such
violation must be provided by the statute itself.
FACTS:
1. B.P. Blg. 33 was enacted to penalize illegal trading, hoarding,
overpricing, adulteration, underdelivery, and underfilling of petroleum
products, as well as possession for trade of adulterated petroleum
products and of underfilled liquefied petroleum gas (LPG) cylinders
through a fine ranging from Php 20,000.00 to Php 50,000.00;
2. The DOE promulgated Circular No. 2000-06-010 as IRR of BP 33;
3. LPG Refillers Assoc. requested the DOE to set aside the subject
Circular for being contrary to law, which the latter denied for lack of
merit. Thus, LPG Refillers instituted a Petition for Prohibition and
Annulment of the same before the RTC, contending that the
penalties introduced therein were not provided by the statute, in that
providing for penalties on a per cylinder basis for each violation
might exceed the maximum penalty under the law;
4. RTC ruled in favor of the LPG Assoc. and denied DOE’s MR, hence
the instant Petition for Review on Certiorari (Rule 45).
ISSUES:
WON the Circular exceeded the agency’s rule-making power.
PROVISION:
RULING + RATIO:
No.
 The Circular was well within DOE’s rule-making power as
delegated by the statue. “For an administrative regulation, such as
the Circular in this case, to have the force of penal law, (1) the
violation of the administrative regulation must be made a crime
by the delegating statute itself; and (2) the penalty for such
violation must be provided by the statute itself.” Thus:
x x x The Circular satisfies the first requirement. x x
x the Circular merely lists the various modes by
which the said criminal acts may be perpetrated,
namely: no price display board, no weighing scale,
no tare weight or incorrect tare weight markings, no
authorized LPG seal, no trade name, unbranded
LPG cylinders, no serial number, no distinguishing
color, no embossed identifying markings on cylinder,
underfilling LPG cylinders, tampering LPG cylinders,
and unauthorized decanting of LPG cylinders.
These specific acts and omissions are obviously
within the contemplation of the law, which seeks
to curb the pernicious practices of some
petroleum merchants.
As for the second requirement, we find that the
Circular is in accord with the law. x x x the monetary
penalty for any person who commits any of the acts
aforestated is limited to a minimum of P20,000 and a
maximum of P50,000. Under the Circular, the
maximum pecuniary penalty for retail
outlets is P20,000, an amount within the range
allowed by law. However, for the refillers, marketers,
and dealers, the Circular is silent as to any
maximum monetary penalty. This mere silence,
nonetheless, does not amount to violation of the
aforesaid statutory maximum limit. Further, the mere
fact that the Circular provides penalties on a per
cylinder basis does not in itself run counter to
the law since all that B.P. Blg. 33 prescribes are
the minimum and the maximum limits of
penalties. x x x
(emphasis supplied)
DISPOSITION: Petition GRANTED. Sec. Perez wins.